Under the trade war, the impact of three major trends on the silicone market
Let’s first take a look at why there is a trade war? According to statistics from the U.S. Department of Commerce, in 2017, the bilateral import and export volume of goods between the United States and China was US$635.97 billion, an increase of 10.0%. . Among them, the United States’ exports to China were US$130.37 billion, an increase of 12.8%, accounting for 8.4% of the total US exports, an increase of 0.5 percentage points; the US imports from China were US$505.60 billion, an increase of 9.3%, accounting for 21.6% of the total US imports, an increase of 0.4 percentage points. percentage point. The U.S. trade deficit was US$375.23 billion, an increase of 8.1%, and the trade deficit with China accounted for 47% of the entire U.S. trade deficit.
Based on the tax increase lists of the United States and China, combined with the actual situation, three major predictions on the future impact of the silicone industry:
First: The U.S. tax list mainly affects the supply chains of manufacturing companies and Chinese high-tech companies, which increases the costs of U.S. manufacturing companies and forces them to switch to sources outside China. Purchasing from other places includes domestic companies in the United States; this will have a huge impact on export-oriented Chinese silicone companies, among which the silicone rubber industry has the most direct impact. In the past, there was a lot of re-export trade to the United States. In addition, China’s real estate has entered a recession, and silicone It is inevitable that ketone rubber companies will undergo a major reshuffle and suffer huge losses, and transforming their product direction is the only way out.
Second: China’s tax list includes “polysiloxanes in primary shapes”, which mainly affects imported silicone products of foreign brands. The overall tariff plus value-added tax is reduced The price of imported organic silicon has increased by 30% (currently, the price of imported organic silicon products has reached a record high. If it increases by another 30%, it will really be unsaleable in any country). The scale of the companies producing these organic silicon products in the United States is very large, and exports The proportion of products going to China is not high and the impact is small, but it will increase the manufacturing costs of Chinese companies that rely on imports of American silicone raw materials. This is unfavorable. A considerable number of companies must turn to purchasing products from domestic silicone companies, which will Opportunities remain for domestic silicone companies with technological innovation and application capabilities.
Third: The U.S. list mainly involves industries such as aerospace, information and communications technology, robotics and machinery, and contains approximately 1,300 independent tariff items. Not directly for daily consumers, including silicone rubber products, rubber products, metal products, stainless steel products, etc. On the contrary, we welcome China’s silicone rubber products to be exported to the United States in large quantities to enrich people’s lives.
In the end, the United States is attacking China’s high-tech electronics industry, but it is good for the domestic silicone rubber industry, which is mainly for civilian use. I firmly believe that no matter how the international situation changes, China The silicone industry is ultimately the biggest winner. The spring of the silicone industry is here.
